Halister News

(Bloomberg) -- Japanese Ministry of Finance’s 400b yen ($3.7b) auction of 10-year inflation-linked govt bonds draws bid-to-cover ratio of 2.84, highest since Jan. 2015 sale and up from 2.47 at last offering on Jan. 13.

• Issue price was 104.90, highest since Nov. offering and compares with 104.40 at Jan. sale; median est. 104.70 in Bloomberg survey of 11 primary dealers
• Inflation-linked JGBs are likely to be supported from a supply-demand perspective, Deutsche Bank writes in note today before auction’s outcome; sees scope for large improvement in supply-demand situation of these JGBs for current fiscal year that started in April
• Issuance amount of inflation-linked JGBs has been reduced to 400b yen in April from 500b yen in Jan.: MOF data; finance ministry said last month that it will buy back approximately 20b yen each of these securities in April and June
• A bond market measure of inflation expectations over next 10-years known as breakeven rate down at 0.358% vs 0.369% on April 11